Phil Harrison on 360 Elite and HD-DVD

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In this month's issue of Game Informer, they had an interview with Phil Harrison (Pres. Worldwide Studios, SCE)

"What was you reaction to the announcement of the Xbox 360 Elite package? Do you see it as a threat to PS3 or a vindication of your higher-end strategy?"

"Well, I was surprised that it did not include an HD-DVD player functionality as standard. So I guess that says a fair amount about how our friends at Microsoft view the HD-DVD/Blu-Ray disc movie value and contribution that is made to these consoles. Just this week, analysts are saying that Blu-Ray disc as a movie format is going to be strong in influencing PS3 hardware sales. We're like "Yeah, we know - that's why we put it in there." It was the same with electing to put DVD in PS2. It was perhaps not so meaningful day one, but it got stronger as a contributor to the decision to purchase as the format went on. I think the same will happen with Blu-Ray disc."

Phil rocks! Couldn't have said it better myself.